The price of Virtuals Protocol (VIRTUAL) has softened following a strong rally, dropping 8% in the last 24 hours. Nonetheless, the overall outlook remains positive.
The token has increased nearly 79% over the past week, and this pullback may simply be a brief pause before another upward movement, provided it stays above a crucial support level.
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Mega Whales Accumulate as Retail Interest Returns
While smaller holders realized profits, mega whale wallets—the top 100 VIRTUAL addresses—quietly increased their holdings during the latest dip. Their combined balance has risen by 0.06% over the past 24 hours to 966.01 million tokens, indicating an addition of approximately 0.58 million VIRTUAL.
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This steady accumulation often signals that large holders perceive the correction as temporary.
Meanwhile, exchange balances have decreased by 0.46%, with around 0.18 million tokens leaving trading platforms. This indicates that while mega whales are accumulating, retail and smaller whales might be taking profits. Yet, net buying pressure persists.
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This quiet accumulation aligns with improving chart signals.
On the 4-hour chart, the 100-period Exponential Moving Average (EMA) has crossed above the 200-period EMA, a bullish crossover often indicating increasing strength in the short-term trend. The EMA prioritizes recent prices, aiding traders in spotting early momentum shifts.
Simultaneously, the Money Flow Index (MFI), which monitors market inflows and outflows based on price and volume, has begun to rise from around 40 towards 60.
This suggests a gradual return of buying power, particularly from retail traders who often respond to whale activities. The recent VIRTUAL/USDT listing on OKX may be a catalyst for this renewed retail interest.
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Combined, these on-chain and chart indicators imply that both large and small investors are positioning for a continuation of the broader upward trend. The current price pullback in VIRTUAL seems to be a pause rather than the conclusion of the rally.
Flag Breakout And Bullish Divergence Keep the VIRTUAL Price Rally Alive
VIRTUAL has recently broken out of a flag-and-pole pattern near $1.42, a setup often preceding further upward movement following a sharp rally. From this breakout, the projected move aims towards $3.34, which represents a potential gain of 133% from the current levels.
However, the token must close a complete 4-hour candle above $1.65 to confirm renewed strength and attempt to reach $3.34. Adding weight to this perspective, between October 26 and 28, the price formed a higher low while the Relative Strength Index (RSI) made a lower low.
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This pattern, identified as a hidden bullish divergence, typically indicates that the uptrend remains intact even as prices stabilize.
This also suggests that the current pullback could conclude soon if buyers continue to defend the lower levels.
For downside validation, the bullish setup remains intact as long as VIRTUAL stays above $1.17. A 4-hour close below that could lead to a drop towards $1.06, potentially negating the bullish momentum from the pole-and-flag breakout.
Even if the rally reaches $3.34, VIRTUAL would still be about 35% below its all-time high of $5.07, indicating considerable room for recovery. If the broader trend continues, this pullback could catalyze another significant rebound phase rather than signal an end.
